By Wallace Witkowski
Activision Blizzard Inc. shares fell in the extended session Thursday after the videogame publisher's December-quarter outlook fell well short of Wall Street expectations.
Activision (ATVI) shares fell 5.8 % after hours, following a 1.6% decline in the regular session to close at $77.77.
The company forecast adjusted fourth-quarter earnings of 63 cents a share on revenue of $2 billion, while analysts surveyed by FactSet had forecast earnings of $1.11 a share on revenue of $2.62 billion.
For the year, Activision expects adjusted earnings of $3.08 a share on revenue of $7.68 billion, while the Street had estimated $3.30 a share on revenue of $7.94 billion.
Read: Videogames are about to get more expensive for the first time in 15 years ()
The company reported third-quarter net income of $604 million, or 78 cents a share, compared with $204 million, or 26 cents a share, in the year-ago period. Adjusted earnings, which exclude share-based compensation expenses and other items, rose to 88 cents a share from 38 cents a share in the year-ago period.
Revenue rose to $1.95 billion from $1.28 billion in the year-ago quarter.
Analysts had forecast earnings of 65 cents a share on revenue of $1.69 billion, while the company had forecast 75 cents on revenue of $1.8 billion.
Separately, the company said it would release "World of Warcraft: Shadowlands" on Nov. 23, after the company had delayed its planned late October release ().
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2020 16:43 ET (20:43 GMT)
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